Is the Recovery Sustainable?

It is the outlook for business profits, not household incomes, that will determine the strength of the economy over the next year and we believe the profits recovery is well enough established to drive the economy at an above 4% pace over the next year.

NOVEMBER 7 - We see the third quarter GDP report as providing further support for our thesis that the economy is in a sustainable cyclical upswing. Real GDP growth was 7.2% in third quarter, following a gain of 3.3% in the second quarter. In our view, it is the outlook for business profits, not household incomes, that will determine the strength of the economy over the next year and we believe the profits recovery is well enough...